A Debit Balance in the Allowance for Doubtful Accounts

question 46

Multiple Choice

A debit balance in the Allowance for Doubtful Accounts

• A)is the normal balance for that account.
• B)indicates that actual bad debt write offs are higher than previous provisions for bad debts.
• C)indicates that actual bad debt write offs have been less than what was estimated.
• D)cannot occur if the percentage of receivables method of estimating bad debts is used.

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